Saturday, December 2

The public deficit in September stood at 4.23% of GDP, 34% less than in 2020

The deficit of the public administrations as a whole (except local corporations) decreased by 34% through September compared to the same period in 2020, until 51,147 million euros, equivalent to 4.23% of PIB, according to the data released this Monday by the Ministry of Finance.

The autonomous communities closed September with a surplus of 9.238 million, equivalent to 0.76% of GDP, when a year earlier they registered a much lower positive balance, of 1,608 million (0.16% of GDP).

The positive evolution of the autonomies is the result of 6.7% increase in expenses, compared to 11.8% revenue growth.

State transfers, which represent more than half (50.9%) of regional resources, grew by 13.6% in the first nine months, to 94,488 million, after in September 9,426 million were transferred, 70% of the item collected in the 2021 budgets destined to cover basic public services.

All the autonomies ended the period in surplus, except Murcia, which reduced its deficit to 42 million (0.13% of its GDP).

Social Security funds reduced their deficit by 67.1%, up to 7,053 million, which represents 0.58% of GDP.

The State, which bears the greatest impact of the health crisis and the cost of measures to protect income and the productive fabric, ended September with a deficit of 4.41% of GDP, after reducing its amount by 6.7% year-on-year, to 53,350 million.

State deficit until October

The Ministry has also advanced the State deficit until October, which stood at 54,191 million, equivalent to 4.48% of GDP, what supposes a decrease of 7.3% compared to the same period of the previous year, thus continuing the downward path that began in April as a result of the economic reactivation.

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This result is due to a significant increase in non-financial income of 19% (177,021 million), compared to a lower growth in expenses of 11.6% (231,212 million).

The Treasury recalls that both in 2020 and 2021 the data is affected by the reversion to the State of some sections of toll roads at the end of the concession period, whose subsequent maintenance is assumed by the State.

This circumstance has not had an impact on the deficit, although it has affected spending and income for the same amount of 1,745 million in 2020 and 985 million in 2021.

State tax collection between January and October grew 20.9%, up to 149,142 million, with an increase of 17.3% in income from VAT, 28.2% for personal income tax, 30.1% for corporate tax and 32.6% for premium tax insurance (high in 2021 budgets).

The second installment payment of corporation tax reached 12,693 million, which represents an increase of 69.6% compared to 2020.

Tax collection on capital grew 135.9%, while income from social contributions fell by 1.5%.

On the expense side, the item with the highest volume was transfers between public administrations, which reached 149,623 million, 13.4% more than in the same period of 2020.

Within that game, the current transfers to the autonomous communities, which have increased by 15.4%, to 92,583 million, due to the greater volume of resources destined to face the pandemic.

The compensation of employees grew by 4.5%, to 15,876 million, by incorporating the salary increase for this year of 0.9% compared to 2% in 2020.

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Intermediate consumption amounted to 4,812 million, 29.5% more due to the purchase of vaccines for an amount of 1,142 million, without correspondence in 2020, according to the source.

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